News Today: Sri Lanka signs bilateral loan deal with Saudi Fund to boost recovery

Sri Lanka marked a key milestone in its external debt restructuring journey today with the formal signing of Bilateral Amendatory Loan Agreements with the Saudi Fund for Development (SFD) in Colombo.

These vital agreements, totaling Saudi Arabian Riyals 517 million (516,951,065.02), are designed to restructure previously extended SFD loans. This step significantly advances Sri Lanka’s broader efforts to recover from its debt crisis and restore macroeconomic stability.

The Kingdom of Saudi Arabia has consistently proven to be a steadfast development partner for Sri Lanka, especially during the recent economic crisis. Despite Sri Lanka’s declaration of a debt standstill, the Saudi Fund for Development continued disbursing funds to maintain momentum on critical development projects across the island.

The SFD loans, provided on concessionary terms, have played an essential role in easing Sri Lanka’s external debt burden while supporting sustainable economic growth. The loans have also helped fund projects in infrastructure, health, and education, benefiting millions of Sri Lankans directly.

The bilateral agreements were formally signed by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning, and Economic Development, and Mr. Sultan Abdulrahman A. Almarshad, CEO of the Saudi Fund for Development.

This new agreement is seen as a strong signal to international creditors and investors about Sri Lanka’s commitment to implementing its comprehensive debt recovery framework in partnership with key bilateral lenders.

By successfully negotiating and signing these amendments, Sri Lanka is moving closer to achieving long-term debt sustainability and economic resilience while strengthening diplomatic and economic ties with the Kingdom of Saudi Arabia.